The US Dollar Exchange Rate was trading in the region of 0.7511 against the Euro as of 14:32 pm GMT
New York, that concrete jungle where dreams are made of, experienced an unpredicted expansion of its manufacturing sector in February.
The area’s factories have been stagnating since last August, but the latest data indicates that that situation is now changing.
The Federal Reserve Bank of New York’s general economic index leapt from 7.8 last month to 10 in February – exceeding economist’s expectations.
Meanwhile a measure of factory employment climbed from minus 4.3 to 8.1 and the Empire State gauge of new orders advanced from January’s minus 7.2 to 13.3.
The improving US labour and housing markets are likely to add further support to the manufacturing sector (which contributes roughly 12 per cent to the US economy) in the months ahead.
One industry expert commented: ‘The economy is getting poised for better times’ while another asserted: ‘Our near-term outlook is tempered by uncertainties over fiscal, economic and trade issues. This is hurting business confidence and restraining growth, but we continue to invest in the future, as the longer term-picture continues to be extremely bright.’
However, a separate report showed an unexpected decline in US industrial production last month, with factory, mining and utility output dropping by 0.1 per cent. This follows a gain of 0.4 per cent. In response to this news RBS Securities Inc economist Guy Berger stated: ‘Manufacturing will advance slowly this year as long as demand keeps growing and nothing knocks the economy off course. Markets like China and Latin America will keep a floor under US exports.’
Today much of the movement in the US Dollar has occurred as a result of developments in the G-20 meeting.
After one of the group’s officials claimed that they had not yet reached an accord which echoed the G-7 (regarding exchange rates not being a target of fiscal policy) the Japanese Yen fell against the US Dollar, shedding earlier gains.
The ‘Greenback’ also lost ground against the New Zealand Dollar as the latter currency broadly strengthened following a positive retail sales report for the South Pacific nation. This latest piece of upbeat Kiwi news has strengthened the odds of the Reserve Bank of New Zealand raising rates.
Meanwhile the ‘Greenback’ continued to advance on the Euro, gaining 0.3 per cent, as yesterday’s disappointing GDP data for the Eurozone restrained the common currency.
Although the Pound recovered from yesterday’s six month low against the US Dollar this morning its rebound was to prove short lived. An unexpected decline in UK retail sales saw Sterling pare its modest gains.
Finally, the US Dollar rose against its Canadian counterpart after Canadian manufacturing sales dropped by more than forecast. Although a separate report showed that sales of existing homes in Canada increased modestly in January from the previous month they were still down by 5.2 per cent on the year.
With the volatile Michigan Confidence survey still to come additional USD fluctuations can be expected in the hours ahead.
Current US Dollar Exchange Rates
The US Dollar to Euro exchange rate is currently trading at 0.7511
The US Dollar to Pound Sterling exchange rate is currently trading at 0.6454
The US Dollar to Canadian Dollar exchange rate is currently trading at 1.0020
The US Dollar to Australian Dollar exchange rate is currently trading at 0.9664
The US Dollar to New Zealand Dollar exchange rate is currently trading at 1.1793
The US Dollar to Emirati Dirham exchange rate is currently trading at 3.6730
The US Dollar to Swiss Franc is currently trading at 0.9230
The US Dollar to Japanese Yen exchange rate is currently trading at 93.2500
These exchange rates were correct as of 14:32 pm GMT
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